House Votes To Strip $60 Million From Iron Range Fund

Iron Range lawmakers waged an emotional fight, but failed to prevent the Minnesota House from taking $60 million out of an economic development fund for their area.

The House approved a bill 70-60 Tuesday funding various job-related programs while reducing spending $27 million to help balance the state budget.

Rangers lit up the House chamber with an emotional hour-and-a-half debate about the proposal taking nearly half of the Douglas Johnson economic development fund. Republicans who control the House took the money to help balance the state budget.

â€œI would not steal your property taxes like you are stealing ours,â€ Rep. Tom Rukavina, DFL-Virginia, said. â€œI would not steal your childrenâ€™s future like you are stealing ours.â€

The debate was spurred by Rukavinaâ€™s amendment to take money out of cities represented by Republicans. After lengthy debate, he withdrew the amendment, saying he just was trying to make a point.

â€œThis is a targeting of people because of who they are, how they vote, where they live,â€ Rukavina said about the Republican-written bill.

The Iron Range is dominated by Democrats.

The only Republican Iron Range lawmaker bolted from her party to ask lawmakers to protect the Johnson fund.

â€œThey must prepare now by sheltering the money from the mines to prepare for tomorrow,â€ Rep. Carolyn McElfatrick, R-Deep River, said. â€œThis is important for our today, but it also is important for our tomorrow.â€

Democratic-Farmer-Laborite Iron Range lawmakers took to the microphone during almost all of the Johnson debate, with Republicans generally keeping quiet.

However, Rep. Kurt Bills, R-Rosemount, said that taking the money â€œtwists me up.â€

â€œI donâ€™t like how this is done,â€ Bills said. â€œIt seems like a near-term fix.â€

Money for the Johnson fund comes from taxes on taconite production, instead of charging mines property taxes. It is used to fund economic development in seven northeast Minnesota counties through the Iron Range Resources and Rehabilitation Board.

Since 2002, the fund has helped create 4,588 jobs, Rep. Dave Dill, DFL-Crane Lake, said. It is the stateâ€™s best example of how to expand business, he added

Post navigation

ABOUT

Don Davis

Davis has covered Minnesota politics and government for Forum Communications Company/Forum News Service since 2001. He is an Iowa native who was a reporter and editor at newspapers there, leaving the state to edit newspapers in Illinois, Oklahoma and Wyoming before becoming a full-time political reporter in North Dakota. Now, newspapers across Minnesota print his stories.